Sunday, 12 April 2020

AirAsia founders not taking salary as staff take a pay cut of up to 75%

Photo Air Asia
The founders of the low-cost AirAsia Group Bhd have agreed they would not be receiving salaries during the crisis caused by the global coronavirus COVID-19 pandemic.  The move was announced as the airline's staff have agreed to a pay cut of up to 75%.

"We are one of the few airlines world over who has kept all of our staff on. AirAsia is a family and there are tens of thousands of Allstars who depend on the business for their livelihoods and the wellbeing of their own families. Kamarudin and I will not be taking a salary during this period and Allstars from across the business have accepted temporary pay reductions of anywhere between 15-75%, depending on seniority, to share the impact this is having on our business. I thank them for their sacrifice and in keeping the big picture in mind as we navigate this together." Said Group Chief Executive Officer Tony Fernandes in a statement released on Saturday. 

Tony Fernandes  Photo Air Asia
"When [Datuk Kamarudin bin Meranun] and I started AirAsia nearly 20 years ago, we had a dream of allowing everyone the opportunity to fly. Sadly, that opportunity has now been taken away from us for now. "  Fernandes said.

"This is possibly the biggest challenge we have ever had to face. We have no revenue coming in, 96% of our fleet is grounded and we still have significant ongoing financial commitments such as fuel suppliers and leasing agents.

We are doing everything possible to reduce costs during this time so we can come back fighting as fast as possible and continue to be the world’s best low-cost carrier, enabling everyone the ability to fly with our great value and service."

In the statement, Tony Fernandes asked for customers to accept its credit arrangement for future travel plans rather than requesting a refund for the flights that have been cancelled.  The processing time for a refund could take between 12 to 16 weeks. The credit which is instant and comes with a 365-day validity and allows customers to change their flight date an unlimited number of times in that year.

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